There are, says Jim Shankland, Chairman of the new Global Phoenix Property
Investments, good reasons for the launchers of the fund, Madison Property
Fund Managers, being entitled to claim that there are few better investment
opportunities in South Africa today.

Phoenix, which is now raising capital, plans to invest in eight to ten
listed property companies, initially in the UK and Australia, thereafter
in Europe and possibly the US. Having just printed their prospectus, they
are now canvassing the market for US$200 million.

Shankland says that among the good reasons for supporting the fund are
the facts that:

The managers are among the most respected in South Africa today. On the
board are Marc Wainer, Wolf Cesman, Mike Flax (who initiated the fund),
Gerald Leissner and Brian Goldberg, all of whom have been involved in
property all their lives and who are recognized leaders in the industry
in South Africa.

This is a group of far-sighted individuals whose track record in
property is possibly without equal in South Africa, says Shankland.
Furthermore, all of us on the management team, including myself,
have good connections with like-minded colleagues in major international
financial institutions who will, we are confident, introduce us to opportunities
throughout the areas in which we are to operate.

The management team will, with one exception (Jim Shankland himself),
all be based in South Africa where they have well-known reputations to
protect. This, says Shankland, is particularly important because the vast
majority of the shareholders are likely to come from South Africa and
the fact that the management teams credibility will be at stake
is highly significant.

You can take it from me that they will not allow themselves to
be associated with anything that might not live up to their promises,
he says.

The directorate are themselves all investing in Phoenix heavily.

The original plan drawn up by Mike Flax was for himself and a few
friends to invest - but it was then realised that to achieve the impact
and the spread that they seek, they have to have more substantial funds
available.

At least one major South African financial institution, says Shankland,
is showing great interest in becoming one of the initial funders.

Right now, the First World listed property companies, says Shankland,
are trading at 70% plus discounts to their previous prices. This means
that whoever buys now can get into excellent portfolios at exceptionally
good prices. (Shankland commented that without downplaying the potential
of many of the emerging markets, e.g. China and India, the First World
listed property companies remain the preferred choice for those who are
on the whole risk averse. They are, he says, still the safe houses
in the investment world.)

The Phoenix portfolio will be diversified geographically, sector-wise,
between commercial, retail and industrial and of course as regards currency.
This diversification, he says, will make Phoenixs risk profile a
good one.

The investigations of companies into which Phoenix will buy will be thoroughly
handled and will involve not only the management team but a number of
reputable consultants. With such a wide range of choice, the final selection,
says Shankland, is likely to be good.

Shankland added, as he sees it, that the First World Economy is set to
recover from the end of this year onwards - already, he believes, the
stock markets are showing the first signs of taking this into account.
Now, therefore, he believes, is exactly the right time to launch a fund
of this kind.

Asked to predict the likely returns from Phoenix, Shankland said that
he definitely did not want to be pinned down on this matter. Nevertheless,
it has been said by most of the management team that a return in excess
of 30% per annum compounded is possible.

It is not my nature, says Shankland, to make bullish
and optimistic forecasts, particularly when other peoples money
is at stake - and there are a number of difficulties to be overcome before
a full scale recovery is on the cards - but with this management team
behind it and at this time I can think of very few more promising investments
than the new Phoenix offering.